The McGraw-Hill Companies Earnings: Here’s Why Shares are Up Now

The McGraw-Hill Companies, Inc. (NYSE:MHP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.43%.

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The McGraw-Hill Companies, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 56.86% to $0.80 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Decreased 11.27% to $1.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The McGraw-Hill Companies, Inc. reported adjusted EPS income of $0.80 per share. By that measure, the company beat the mean analyst estimate of $0.73. It beat the average revenue estimate of $1.17 billion.

Quoting Management: “The Company is off to a strong start with the revenue and earnings growth we delivered in the first quarter,” said Harold McGraw III, chairman, president, and chief executive officer of McGraw Hill Financial. He continued, “McGraw Hill Financial is focused on providing clients with the essential intelligence they need to make better informed decisions. Our mission is to be the foremost provider of ratings, benchmarks, and analytics in the global capital and commodity markets. Our long-term growth prospects are excellent because of the outstanding people, culture and capabilities of this Company—and the powerful enduring trends in our markets.”

Key Stats (on next page)…

EPS increased 6.67% from $0.75 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.91 to a profit $0.81. For the current year, the average estimate has moved down from a profit of $3.80 to a profit of $3.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)